China's Gift-Giving Culture Has Gotten A Lot More Modest

We've previously noted the changing dynamics of China's culture of gift-giving, hastened by Beijing's recent crackdown on excessive spending by government officials, but this week, a new Hurun Report survey finds that two luxury segments in particular — luxury watches and Chinese spirits — have been the hardest hit.

According to the Chinese Luxury Consumer Survey 2013, which surveyed 551 Chinese millionaires with net worth of over 10 million yuan, leading baijiu brand Moutai has fallen out of the top 10 brands preferred for professional gift-giving by millionaires in China, dropping from fifth to 13th place.

"[Moutai's] drop in popularity came on the back of the public debate on whether government officials,the largest customer base for Moutai, should be allowed to consume what is effectively a luxury brand with its main product retailing at 1,800 yuan ($289) a bottle, and also a health scare involving the use of plasticizers."

Though behavior is changing, gift-giving is unlikely to completely go the way of the dodo in China. Conversely, it continues to thrive, yet in many cases luxury timepieces and high-priced bottles of baijiu are simply being replaced by less visible items. Indeed, a look at the Hurun Report's study shows that accessories are far and away the most popular gifting category across all major luxury brands among Chinese millionaires. Smaller items like pens, keychains, wallets and bags that are easily concealed should remain popular gifts even in times of greater scrutiny, and as such brands like Montblanc (ranked seventh on this year's list) could see a boost on the next installment.